Categories: BusinessSports

Billion-Dollar Cricket: IPL’s Growth Story Shakes Global Sports Economics

IPL’s valuation hits USD 18.5 billion in 2025, with strong brand growth, digital dominance, and franchise profitability, establishing it as a global benchmark in sports and entertainment business models.

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Published by ANI
Last updated: July 13, 2025 12:13:55 IST

The business valuation of the Indian Premier League (IPL) has surged to an unprecedented USD 18.5 billion, marking a 12.9% increase over the past year. According to the latest analysis by global investment bank Houlihan Lokey, this translates to Rs 1.56 lakh crore in Indian currency. The growth underscores the IPL’s position as one of the most lucrative and influential sports leagues globally.

The brand value of the IPL also witnessed a significant rise, increasing by 13.8% in 2025 to reach USD 3.9 billion (Rs 32,721 crore), reflecting a 16.1% increase year over year in INR terms. Brand value, as explained by Houlihan Lokey, refers to the monetary worth of intangible assets like trademarks, goodwill, and trade names, and forms a subset of a company’s or entity’s overall business value.

Since its inception in 2008, the IPL has grown into a multibillion-dollar enterprise. Its influence goes beyond cricket, shaping global trends in broadcasting, fan engagement, and franchise-based sports models. The 2025 IPL season, in particular, showcased the league’s resilience and agility. Despite a brief suspension in May due to geopolitical tensions, the tournament resumed quickly thanks to efficient contingency planning and strong stakeholder coordination.

Franchise valuations have skyrocketed, media rights have reached record levels, and brand partnerships have expanded across diverse sectors. Top franchises now generate between Rs 6,500 million to Rs 7,000 million in annual revenues, with nearly 80% of their visibility secured even before the tournament begins.

On the cost side, the implementation of a salary cap (Rs 1,200 million per team) helps control wage inflation and ensures competitive balance. This embedded cost control feature protects margins and encourages sustainability.

IPL franchises operate with minimal fixed-asset exposure, as they benefit from BCCI-owned stadium infrastructure. This capital-light model results in high returns on employed capital. Compared to global peers like the English Premier League (EPL) and the NBA—which face challenges such as high transfer fees, fluctuating wages, and costly stadium operations—IPL franchises enjoy a structure that reduces downside risk and enhances operating leverage.

Houlihan Lokey’s analysis highlights the IPL’s appeal to institutional investors. The league is seen not just as a sports property but as a high-growth compounder in the entertainment domain. With a rapidly growing fan base, rising disposable incomes, and increasing demand for premium digital content, the IPL is well-positioned for long-term growth.

Adding to its appeal, the 2025 IPL final saw Bengaluru (RCB) defeating Punjab Kings (PBKS) in a match that broke viewership records. The title clash garnered over 600 million views on JioCinema, reaffirming the IPL’s status as India’s top sporting event and one of the world’s most-watched broadcasts.

(From ANI) 

Also Read: India’s Semiconductor Ambitions: Reducing Imports By Up To $20 Billion With Government Support

Published by ANI
Last updated: July 13, 2025 12:13:55 IST

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